Variable mortgages are the most popular mortgage product offered by lenders in the UK. The interest rate of a variable mortgage will rise and fall throughout the term of the loan, reflecting the market but determined by the individual lender. The base rate is decided by the bank of England, and lenders alter their interest rates in relation to its varying movements.
There is a greater degree of risk involved with this kind of mortgage, but it is typically – though not always – regarded as the least expensive mortgage product in the long term.